Automakers turn eyes East and its explosive opportunities
According to the business journal, Chinese demand for automobiles grew between 60% to 70% per year between 2001 through 2004, only to be slowed down when the government increased interest rates. BW predicts the average growth to be at least 10%-15% per year with Global Insight Inc. suggesting the Middle Kingdom will be the second largest marketplace after the U.S. by the year 2013.
[More after the jump]
[Source: Business Week]
India's growth has not been as high as in China but had started earlier and proven to be more steady. Domestic automakers, such as Tata Motors Ltd., continue to dominate the market. However, there are large investments in the country's industries from its own automakers and foreign ones like Hyundai, which is the second largest automaker in the world's largest democracy.
Demand in Russia has leaned towards more expensive brands, though. Unlike most countries, the local population benefits when worldwide oil prices are high since Russia is a major exporter of oil and the government keeps prices low for its populace. A big issue for both Russian domestic and foreign automakers struggling to establish local manufacturing facilities has been the low quality of parts and materials.
Full details on market conditions, competitors, manufacturing, and problems in the three markets can be found at the link.
- Most and least efficient car companies
- Fastest-depreciating cars in the United States
- Find and compare 2017 Models